CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

LASSO (least absolute shrinkage and selection operator) is a popular type of ______.

A. penalized regression
B. support vector machine
C. classification and regression tree
Correct Answer: A

LASSO is a popular type of penalized regression. In LASSO, the penalty term involves summing the absolute values of the regression coefficients. The greater the number of included features, the larger the penalty. So, a feature must make a sufficient contribution to model fit to offset the penalty from including it.

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